Nigerian Journal of Risk and Insurance

The Impact of Sustainability on the Performance of Family-Owned Business in Nigeria

Hameed Omotola OJODU — 2025-12-26

The paper examines the impact of sustainability on the performance of family-owned businesses (FOBPs) in Nigeria, and it evaluates the influence of economic and environmental responsibility on FOBPs. The study employs a survey research design and a study population of 11,643 small-scale businesses operating in Lagos State, Nigeria. Multi-stage sampling was adopted for the study; the sample size was determined using Raosoft's sample size, and 387 samples were selected. The study adopts a regression statistical technique analysis to test hypotheses using SPSS. The findings revealed that economic responsibility has a significant influence on family-owned business performance; (ECOR) (0.6351) is positive and significant at 5%, showing that ECOR has a positive and significant impact on FOBP and environmental responsibility; (ENVR) (0.6296) is positive and significant at 5%, showing that ENVR have positive significant relationship on FOBP. The combine effect has similar results. Hence, the study revealed that FOB operators need to be more concerned about improving its economic and environmental responsibilities to fulfill its obligations.

Underwriting Risk and Performance in the Non-Life Insurance Sector in Nigeria

Akeem Bamidele AGBOOLA — 2025-12-26

Insurers face underwriting risk in their basic operations, which, if inadequately managed, may threaten their profitability. This study aimed to examine the impact of underwriting risk on the performance of publicly traded non-life insurers in Nigeria. This research employed an ex post facto design, utilising data spanning 13 years (2012-2024) from the audited annual reports of 11 insurance companies. The random-effects regression model indicated that underwriting risk has a significant negative impact on underwriting profit and a significant positive impact on the expense ratio. Insurance businesses are advised to enhance their risk assessment frameworks, implement actuarially robust pricing models, and further develop their data analytics capabilities. They must institutionalise rigorous underwriting criteria and enhance internal monitoring systems to mitigate risk buildup, while focusing on cost-containment techniques such as process automation, efficient claims administration, and the elimination of administrative overheads. By using these measures, they can improve underwriting profitability, minimise cost inefficiencies, and secure long-term financial sustainability in a progressively competitive and uncertain insurance market.

Actuarial Analysis of Historical Mortality Trends in Nigeria and Their Implications for Annuity Valuation

Olamide Eniola PATRICK — 2025-12-26

This study analyses historical trends and patterns in age-specific mortality in Nigeria and their actuarial implications for annuity valuation. Using secondary data from the United Nations World Population Prospects (2024 revision), the study applied descriptive and trend analysis to age-specific death rates and life expectancy across selected ages from 1960 to 2024. Descriptive statistics, graphical trends, and comparative assessments were used to evaluate improvements in mortality by age and gender. The results show a consistent decline in mortality rates over time, with the fastest improvements observed among children and young adults, and slower reductions among older adults. Female mortality rates remained consistently lower than those of males, reflecting global longevity patterns. These findings indicate that longevity risk is increasing for pension and annuity providers as Nigerians live longer. The study concludes that periodic review of mortality assumptions is essential for accurate pricing and reserving. It recommends integrating actuarial analysis into national mortality monitoring to strengthen the financial sustainability of life-contingent products.

Risk Perceptions of Motor-Insurance Fraud in Nigeria: Insights From Industry Experts

Shoyemi SHOYEMI — 2025-12-26

Motor insurance fraud poses a critical threat to the insurer solvency and market integrity, particularly in developing economies where regulatory enforcement and data infrastructure remain weak. In Nigeria, both opportunistic exaggerations (“soft” fraud) and deliberate schemes (“hard” fraud) distort claims performance and erode public confidence in insurance. This study investigates how industry professionals perceive the scale and consequences of fraud, drawing on behavioural and institutional perspectives. Using an expert elicitation methodology, data were obtained through a structured questionnaire administered to 120 insurance experts, including underwriters, claims managers, brokers, and regulators. The findings reveal that systemic weaknesses, such as weak enforcement and cultural tolerance for minor deception, amplify fraud risks. Respondents viewed soft fraud as more frequent but harder to prove, while hard fraud was perceived as less common yet more financially damaging. These results extend existing literature by providing context-specific, empirically grounded evidence from a sub-Saharan African market where reliable claims data are scarce. The study contributes to risk research by demonstrating how perceptions of fraud are shaped by institutional capacity, and it offers actionable implications for enhancing regulatory oversight, improving insurer resilience, and strengthening governance frameworks in emerging insurance markets.